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PEACH BOTTOM TWP., PA-Conectiv Energy has secured the key environmental and construction permits that will allow it to begin construction of a $470-million power plant here in the first quarter of 2008. It has also entered into an agreement with Constellation Energy Group, which will purchase the plant's electrical output.
The location is near Delta at Atom and Pikes Peak roads, approximately 50 miles southeast of Harrisburg and just north of the Maryland border. A Conectiv spokeswoman tells GlobeSt.com it is approximately 10 acres of former farmland. The building's footprint is "a box of about 1,000 feet by 1,000 feet," she says, which would translate to approximately one million sf.
Newark, DE-based Conectiv is the wholesale subsidiary of Pepco Holdings Inc., a merchant energy company based in Washington DC. Conectiv will own and operate the facility. The tolling agreement with Constellation allows Baltimore-based Constellation to have marketing control of the electricity produced at the facility. It will supply natural gas to the facility and pay to acquire the output at undisclosed pricing.
Under the terms of the six-year agreement, deliveries of power begin on June 1, 2011 and extend through May 31, 2017. The plant will produce 545 megawatts of electricity and will have a dual fuel capability, which allows it to produce electricity from either natural gas or ultra low-sulfur fuel oil.
"The Delta project has all of the right things going for it," says Dave Velazquez, Conectiv's president and CEO, in a statement. "The market is sending a signal to build and we are ready with equipment and a site. This is a sign that the competitive wholesale energy marketplace is well designed to provide needed capacity for the consumer."
According to Mayo Shattuck, Constellation's chairman, president and CEO, the project "will help address the long-term need for additional power generation and bolster system reliability in the Mid-Atlantic Area Council and more specifically the Maryland-Pennsylvania region."
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